aSOPR EMAs on Track to Form Golden Cross: Is Bitcoin Ready to Bull Run?

• Bitcoin’s adjusted Spent Output Profit Ratio (aSOPR) is a metric that indicates whether the average Bitcoin investor is selling at a profit or at a loss.
• The aSOPR EMAs are looking to form a golden cross soon, which could indicate that the current cycle has met all the bottom conditions.
• A chart of the aSOPR during the 2014-2015 and 2018-2019 bear markets shows that when the value of the indicator is greater than 1, it means the holders are selling coins at some profit right now.

Bitcoin’s adjusted Spent Output Profit Ratio (aSOPR) is an important metric that can provide investors with valuable insight into the current market cycle. The aSOPR indicates whether the average Bitcoin investor is selling at a profit or at a loss right now. When the value of this indicator is greater than 1, it means the holders are selling coins at some profit. On the other hand, values below the threshold suggest the overall market is realizing some loss at the moment.

Recently, an analyst in a CryptoQuant post explained that the aSOPR EMAs are looking to form a golden cross soon. A golden cross typically occurs when a market is transitioning from a bear market to a bull market. This could indicate that the current cycle has met all the bottom conditions. To gain further insight into the aSOPR, a chart of the metric during the 2014-2015 and 2018-2019 bear markets is presented.

The chart shows that during both bear markets, the aSOPR EMAs crossed at the onset of a bull market. This is an indication that the aSOPR is an accurate indicator of whether holders are selling coins at a profit or at a loss. Additionally, values that are greater than 1 suggest that the holders are selling coins at some profit.

As the aSOPR EMAs approach a golden cross, investors can use this metric to gain insight into the current market cycle. If the aSOPR continues to rise, it could be a sign that the current cycle has met all the bottom conditions and is transitioning into a bull market. On the other hand, if the aSOPR drops below 1, it could mean the market is still in a bear market, and holders are selling coins at a loss.

Ultimately, the aSOPR is an important indicator of whether the overall market is selling coins at a profit or at a loss. Investors should keep an eye on the aSOPR EMAs, as a golden cross could indicate that the current cycle has met all the bottom conditions.